Grand Canyon Times

A recent poll conducted by the National Federation of Independent Business (NFIB) reveals strong bipartisan support for the 20% Small Business Tax Deduction, a provision of the 2017 Tax Cuts and Jobs Act slated to expire at the end of 2025. The poll indicates that a significant majority of Americans support small businesses and wish to see the deduction remain in the tax code.

Chad Heinrich, NFIB's Arizona state director, underscored the deduction's importance, stating, “Small businesses account for 99.5% of all businesses in Arizona and employ more than one million people. The importance of preventing the Small Business Deduction from expiring at the end of the year cannot be emphasized enough." He highlighted the deduction's role in job creation and business expansion, advocating for its permanence in the tax code for the overall health of the economy.

Findings from the survey reveal that over eight out of ten Americans feel it is crucial for the federal government to support small businesses. This sentiment is consistent across political affiliations, with Republicans, Democrats, and Independents largely in agreement. Notably, 93% of respondents believe that making the deduction permanent should be a top priority for Congress, while 95% express concern over potential negative impacts if the deduction expires.

The poll also indicates that 62% of participants want to preserve the deduction, and 77% believe it helps equalize tax rates between small businesses and larger corporations. A significant 91% agree on small businesses' reliance on the deduction, with many believing it positively affects both the broader national economy and local economies.

The 20% Small Business Deduction is intended to balance tax burdens between small to medium-sized enterprises and larger corporations. Its expiration at the end of 2025 is projected to result in increased tax obligations for nearly all small businesses, threatening expansion capabilities and employee wage growth.

The NFIB, an 80-year-old organization advocating for small and independent business owners, stresses the necessity for legislative measures to maintain this crucial tax provision.